If there is one thing a retailer can’t afford do if it wants to stay in business and prosper — especially post COVID-19 — is to stand still.
Moving forward and adapting to consumer needs, wants and expectations is top of the list for brands and that means creating compelling programs such as Ikea’s “Buy With Your Time” that literally compensates (via Google Maps) customers who don’t live close to a store.
That approach, according to Diebold Nixdorf’s Global Head of Self-Service-Retail Matt Redwood, is the future of retail — customers not only being considered and taken care of but the start and end of the shopping experience in the palm of a consumer’s hand. It’s also very much about giving customers what they value most: time.
Retail Customer Experience reached out to Redwood to get deeper insight on the concept of giving customers ‘time,’ and what’s to come in retail innovation.
Q. The customer experience in retail has evolved tremendously in the past decade from the point of interaction with a store associate. Where does it stand today given the expansion of customer interaction with mobile, online, etc.?
A. Customers today have become used to having everything in the palm of their hand, so much so that they now value and expect control when it comes to retail shopping. Therefore, retailers have had to modify their operating models to reflect these new preferences by introducing enhanced self-service solutions that are geared toward putting the customer back in control. Customers have multiple options to choose from when retail shopping, from self-checkout kiosks to paying with their mobile app or purchasing goods online to pick up in store. The retail shopping experience has changed based on what customers value the most: control and time.
Q. One of the emerging trends is the concept of ‘time’ — what’s behind this trend and what’s spurring it?
A. The increase in technology adoption has led to new customer expectations. Customers today expect operational environments that are quick, seamless and make their lives easier. The customer journey must deliver — for example, if a retailer offers pick-up in store options, they must ensure they are operationally fully equipped and stocked to handle these requests. If retailers are unable to keep pace with these changes in customer preferences, they’ll fall short of expectations.
Customers value one thing over most when conducting retail shopping, time. Innovative technology capabilities have addressed this need, introducing faster payment services, self-service machines and expedited shipping options. Technology has essentially optimized every part of a customer’s daily life, so it’s no surprise that customers now expect these trends to carry over into their retail shopping experiences.
Q. What are some best practices or tips for retailers striving to give back a customer’s time — the Ikea approach is innovative. Are there any other examples you’ve seen in play?
A. Lots of retailers are trying new journeys to give back time to their customers. The simplest form builds on an old philosophy, express lanes, but applied to self-checkout. Basket size has always been the measure of a successful customer. However, lurking within the customer base are those who want more trips with fewer items. Focusing on subsets of customers allow you to cater to and improve the frequency of their visits. So you might have lower average basket sizes, but you will gain multiple visits and greater value over the entire relationship with those customers. Gone is the single journey for everyone.
While some retailers focus on new technology, you must have the basics down. Don’t waste people’s time with systems and processes that are not well thought out or properly supported. Get inventory controlled and reliable. Make sure staff is properly trained and supported. Ensure that current technology is easy to use and always operational with no downtime. Understand your current journeys and customer profiles to make sure every current step they must go through in your store is as tight as possible. Through this you will find new opportunities to delight and save customers time.
When you’re ready for a new journey supported by new technology, make sure your execution matches your customer expectations. You cannot go with toe-in-the-water trials that put the least amount of effort to see if customers like the journey. Minimum viable time and resources spent to try something will guarantee consumer disappointment. How many false negatives do retailers receive when new journeys are implemented this way? Enough resources and thought needs invested to give the journey a proper chance for success.
Q. From what you see happening in the retail sector where are most retailers with CX strategies — still in infancy or are most getting advanced?
A. You have leaders in the marketplace like Starbucks, McDonald’s and Neiman Marcus that understand the need and pushing forward with CX. Many retailers are still slow to adopt new, more agile methods for building out their CX. History shows that after retailers invest and implement in technology, it is then used for as long as possible to get the most depreciation from their efforts. Today, the winners in CX will be the retailers that build out a flexible, nimble IT environment that is more modular and adaptable to changing consumer behavior or reacting to outside forces on their marketplaces.